Inspector General Report Highlights Lack of Accountability in Green New Scam

WASHINGTON— The U.S. Department of Energy (DOE) Inspector General (IG) has released another report on the failure of the Office of Clean Energy Demonstrations (OCED) to responsibly implement billions of dollars in Green New Scam awards, reinforcing concerns with how billions of dollars were rushed out the door without proper due diligence. This latest report found OCED did not have adequate internal controls to oversee its $5.8 billion Industrial Demonstrations Program (IDP) funded through the Inflation Reduction Act, and as a result, OCED has put at risk IDP outcomes, including unachieved goals and objectives, improperly reimbursed costs, fraud, waste, and undisclosed conflicts-of-interest.

This report follows a previous IG report issued on June 26, 2025 which found that OCED did not plan, resource, or develop controls to ensure the $8 billion hydrogen hub program would meet its goals and objectives; OCED and the hydrogen hub program did not address overall programmatic risks prior to awarding billions of dollars; and OCED did not conduct an initial programmatic risk assessment of internal or external control environments, as required. Another IG report issued on May 19, 2025 concluded that DOE’s Grid Deployment Office’s (GDO) Grid Resilience and Innovation Partnership Program (GRIP), partially funded by OCED, did not have adequate internal controls. Without a robust internal controls system, the IG concluded that GDO may not identify risks that could negatively impact the GRIP program’s outcomes, such as improperly reimbursed costs, fraud, waste, and undisclosed conflicts of interest.

Compounding these failures, between November 2024 through early January 2025, OCED chose to obligate more than $5 billion in funding on IDP and other projects beyond the first phase of an award, making it more challenging for the new Administration to take a responsible look at whether these awards should receive such funding.

These reports reinforce the importance of the Department of Energy’s ongoing review of financial assistance. Secretary Wright announced this policy earlier this year to ensure responsibility for DOE’s financial assistance, identify waste of taxpayer dollars, protect America’s national security, and advance President Trump’s commitment to unleash affordable, reliable, and secure energy. DOE is undertaking a thorough and detailed review of financial assistance award recipients and the individual projects to ensure, among other things, these agreements are financially sound and economically viable, aligned with national and economic security interests, and consistent with Federal law and this Administration’s policies and priorities and program goals and priorities.